Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1887-12-08
SECRETARY FAIRCHILD's REPORT
Comprehensive Abstracts Therefrom
Concerning the Disposition of the Sur
plus and Measures to Prevent It's Fur
ther Accumulation
WASMlNnInN. Doc.


Secretary Fairchild's report the surplus,
the silver coinage and the tariff, Concern
ing the former, he says
THE question of surplus revenues demands
the earnest attention of both the legislative
and executive branches of the government
BY surplus revenue is meant the money
which annually remains in the treasury of
the United States after the officers of this de
partment have collected the taxes laid ON the
people by the laws of Congress and have
paid all the expenses aud obligations of the
government except the principal of the interest
bearing debt Each year for twenty two
years, there has been such surplus--the
least So ,3i4 sS2 in 1874 the greatest, sli5.-
543, $40. in 1882 The total of this surplus
for the twenty-five wears ended June 30. 1887.
was 81 ,i0l .s45, ,053. 1t was Slo3,l7l ,O97
during the last fiscal year, which was only
about Il million of dollars less than the great
est annual surplus (that of 1854 since the
reduction of taxation in 1883. although the
ordinary expenditures. exclusive of interest
on the public debt, where $50, ,6i2, 1856 greater
in 1887 than in 1854. During the present
fiscal year ending june 30, 1883, the surplus
taxation will amount to Sll3.Oo0 O00."
The treasurer states that reduction of the
revenue is the only remedy to prevent the
accumulation of surplus, He cnumcrates
tn" following ways in which it could he done
First, by decreasing importation. the duties
being increased but this he concludes would
increase the taxation of the people and hence
is impracticable. Second by abolshng the
internal revenue this method he explains nj
great length. He concludes by saying that
"to do away with the revenue from internal
taxes at present would so diminish the rev.
cnues that it would be necessary either to
lay duties on articles of importation now
free, such as tea and coffee, or to suspend
the sinking fund requirement and also ma
terally diminish other expenses of govern
ment." He further shows objections to this
method. But it is not well either to abolish
or reduce internal revenue taxation; it is
tax upon whiskey, beer and tobacco, things
which are in very small measure necessary
to the health or happiness of mankind; if
they are necessary TO any unfortunate man,
they are far less necessary even to him than
are a thousand other articles which the gov
crnment taxes. This tax is the least bur
densome, the least unjust of all the taxes
which government lays or can lay upon the
people; it should not be abolished, nor
should it be reduced it, with due regard to
the existing conditions of labor and capital,
sufficient reduction can be made in the taxa
ton of necessary articles which are in the
daily use of all the people" Third, the
revenue from customs taxation: Here is
where the reduction should be made, and
while reducing, advantage should be taken
of the opportunity to reform the abuses and
inequalities of the tariff laws. Add to the
free list as many articles possible, Reduce
duties upon every dutiable article to the low
est point possible; but in ascertaining these
possibilities the present situation of labor
4 4
The tariff laws are the country's laws;
they do not belong to any section or to any
class; their amendment should be approach
ed in a spirit of justice, and with full con
sideration of all of the obligations which
exist between sections of the country toward
each other, and of those engaged in one pur-
suit toward those engaged in other pursuits
but it should also be approached with cour-
age, and with determination to dispose of
this business in the same way that other busi-
ness is disposed of. and with full regard TO
the rights and equities as well the inter
ests of all concerned. After paying due re-
gard to all these equities, after providing for
due obscrvances of every obligation, it will
be found that great reduction can be made
( in tariff taxation. SO many compensations
/ will be thereby given to this and that indus
/ try that most of them will find themselves in
4 fully as good state as now, many of them
in a much better state. Patient labor,
coupled with firm determination TO lay
aside every consideration save the lasting
! good of the whole country, will enable the
/ Congress to accomplish its task with honor"
As to the disposition of the money already
accumulated in the treasury, he SAYS that ii
is better for it to lay in banks, where it
would be available for the business Of the
try md tstti tfirafr nl
them it would be at once returned to the
channels of business through government
payments no shock would be caused by such
/ withdrawal" As this is the bes, use to make
of this money, I advise it. If, however, it
is thought better to attempt to buy bonds
with it, ] should like to have specific author
ity given to the secretary of the treasury to
do So
Concerning the coinage Of standard silver
dollars he says. The law should be so
amended as to authorize to secretary of the
treasury to issue certificates against the
coming value Of the bullion bought and to
coin only such number Of dollars as he may
deem expedient hereafter. This would not
restrict in the least degree the use of the sill
yer dollar as currency. The certificates
would be equally secure whether represent
ing coined dollars lying in the vaults, or
representing bullion also lying in vaults and
which could be coined into dollars. The
bullion should be melted into the form of
heavy bars, which could not be easily stolen
or lost. In this form the silver could be
easily and quickly moved and counted"
The Secretary renews his recommendation
for the abolition Of custom districts and port,
where the expenses exceed the receipts and
the substitution of preventive service. The
cost of collecting the customs is now 81;
, per cent.
Without any recommendation the secretary
remarks that our foreign carrying trade i
, still declining and that il is difficult to un
: derstand why ships owned by our citizens
, though built in foreign ports should be for
. bidden to carry the American flag while en-
gagged in American commerce.
During the last year 225 national bank
, have been organized and SO have been close
: Ia net increase of 1872.
T The life saving service continues to in
crease in efficiency and usefulness.